Dear CIGAs,

This is called united system ease. It increases liquidity. It scratches the surface of QE, but is not QE.

QE is inevitable. It is the only tool that can stop a run on a bank, be it sovereign, investment or commercial.

Alf Fields is right when he says “Once this correction has been completed, Intermediate Wave III of Major Three will be underway. This should be the largest and strongest wave in the entire gold bull market. The target for this wave should be around $4,500 with only two 13% corrections on the way.”

Click here to read the full speech from Alf Fields… ^[1]

Six Central Banks Take Joint Action to Enhance Global Liquidity
The New York Times
Wednesday, November 30, 2011 — 8:52 AM EST

The Federal Reserve, the European Central Bank and four other big central banks took coordinated action on Wednesday to ease the strain of the European debt crisis on the world economy.

The Fed, the E.C.B., the Bank of Canada, the Bank of England, the Bank of Japan and the Swiss National Bank agreed to reduce the interest rate on so-called dollar liquidity swap lines by 50 basis points, among other measures.

“The purpose of these actions is to ease strains in financial markets and thereby mitigate the effects of such strains on the supply of credit to households and businesses and so help foster economic activity,” the Fed said in a statement.

More… ^[2]

Jim Sinclair’s Commentary

You asked yesterday who would be the lender of last resort and today got your answer.

Fed bails out Europe while ECB dithers
Commentary: Making dollars more accessible won’t solve crisis
By MarketWatch

WASHINGTON (MarketWatch) — On one level, it’s almost funny to call offering dollars at a cheaper rate to foreign banks “coordinated” action.

It’s only coordinated in the sense that the Federal Reserve is printing the dollars and the European Central Bank and other central banks put the greenbacks in the virtual vaults of mangled commercial banks that are drowning in European debt.

But it’s not coordinated in the sense that the ECB taking any bold action of its own to stem the euro-zone debt crisis.

The ECB on Tuesday accidentally wandered into quantitative easing, basically when banks didn’t want to commit to lending money to the Frankfurt-based central bank, which effectively meant that a tiny sliver of the purchases of Spanish and Italian debt it made were funded from money printed out of thin air.

That money printing, called quantitative easing, is old hat at the Fed, as well as at the Bank of England and the Bank of Japan. The results are admittedly debatable, but in ECB circles it’s unthinkable to contemplate, as the ghost of the Weimar Republic continues to haunt German policy makers.

More… ^[3]

Monty Guild’s Commentary

Here is a Bloomberg London article. We could not agree more that gold stocks are cheap, especially juniors with quality assets.

Cold Shares Cheapest Since 2002 Are ‘Coiled Spring’ for Rally: Commodities
By Thomas Biesheuvel – Nov 30, 2011

Gold mining stocks are trading at their cheapest level in at least nine years even as the industry’s profits are estimated to almost double this year and bullion trades close to its historic high.

The benchmark NYSE Arca Gold BUGS Index (HUI) that includesBarrick Gold Corp. (ABX), Newmont Mining Corp. (NEM) and AngloGold AshantiLtd. ended last week at 17 times earnings, the lowest since at least November 2002 and below a five-year average of 37 times.

Investors sold equities across the board as Europe’s debt crisis soured the corporate profit outlook, and they’re ignoring analyst projections for bullion and gold producers. The gold index’s 16 members will increase combined per-share earnings 94 percent this year, according to estimates compiled by Bloomberg.

“When you look back in history, you will say this was a buying opportunity,” said John Wong, a portfolio manager at CQS Group’s New City Investment Managers in London and lead manager of the $200 million Golden Prospect Precious Metals Ltd., a fund holding gold and silver stocks. “It’s like a coiled spring.”

Gold equities have fallen 4.7 percent this year, heading for the first annual decline since 2008. Gold reached a record $1,921.15 on Sept. 6 and is set for an 11th annual gain.

“The market doesn’t trust big spikes,” said Jon Bergtheil, an analyst at Citigroup. “People will wait to see if gold holds above $1,600 for a while.”

More… ^[4]

Jim Sinclair’s Commentary

The US Federal Reserve as the western world lender of last resort.

Britain has entered second credit crunch, confirms Downing Street
Britain has entered a second credit crunch, Downing Street said on Wednesday night, as America was forced to intervene to stop the eurozone crisis leading to a global financial collapse.
By Robert Winnett, and Bruno Waterfield in Brussels
9:57PM GMT 30 Nov 2011

The US Federal Reserve spearheaded a scheme by central banks around the world, including the Bank of England, to lend money to ailing European banks that were struggling to borrow.

The emergency action to stop the international financial system from freezing up again was prompted by rumours that a European bank was facing difficulties and could not raise money. Panic started to spread through the German bond markets, which threatened to result in a credit freeze for European banks.

British banks have been warned by the Financial Services Authority, the City watchdog, that they must make preparations for the collapse of the single currency.

Downing Street sources insisted that the global economy was not facing a “Lehman’s moment”, in reference to the collapse of the American investment bank.

However, a spokesman for the Prime Minister said: “Clearly there is a very serious situation in the financial markets at this time.

More… ^[5]